Black Iron (T.BKI) up 34% on development plans

Stockhouse Canadian Small and Micro-cap Stock Report for Tuesday, July 23, 2013 VANCOUVER (SHfn) –


Black Iron (TSX: T.BKI, Stock Forum) was up 34.4% to 21.5 cents after the exploration and development company announced that Metinvest B.V., Ukraine's largest mining and steel producer, has executed definitive agreements to form a development arrangement with Black Iron and to invest in Black Iron (Cyprus) Ltd. (BKI Cyprus), which is currently a wholly-owned subsidiary of Black Iron. The agreements create a defined path for Metinvest to become a prominent shareholder of Black Iron's development projects, the Shymanivske project and the Zelenivske project, each located in Kryvyi Rih, Ukraine. As part of the agreement, Metinvest will make an initial investment of US$20 million in BKI Cyprus to help fund the projects, with potential investment amounts thereafter expected to increase during construction of the projects to approximately US$536 million.

Africa Hydrocarbons Inc. (TSX: V.NFK, Stock Forum) climbed 23% to eight cents as investors assessed the news that production tubing is being installed at the company's BHN-1 well on the Bouhajla permit in northeastern Tunisia. Following the evaluation of cased-hole logs the decision was made to configure the wellbore for testing purposes. Several interpreted fracture intervals are observed within a 245 metre thick Abiod section. Elevated C1-C4 gas chromatograph readings along with evidence of micro-fractures observed in drill cuttings coincide with the potential fracture intervals. The operator of the well plans to release the drilling rig once the tubing has been set and return with wireline perforating guns and a coiled tubing unit to perforate and acidize the selected test intervals as soon as possible.

Canada Carbon (TSX: V.CCB, Stock Forum) gained 17.9% to 16.5 cents after the explorer said it achieved 100% graphitic carbon on a second purification test conducted at SGS Canada Inc. (Lakefield) on its Miller hydrothermal lump/vein graphite property, located in Grenville Township in Quebec. The alternative purification process treated the +48 mesh concentrate with an alkaline roast followed by a conventional acid leach. The alkaline roast stage increased the purity from 93.5% graphitic carbon (94.4% carbon) to 99.1% graphitic carbon (100% carbon). The acid leach stage resulted in an exceptional product grade of 100% graphitic carbon (100% carbon). A loss on ignition test was also performed resulting in 100% loss. The presence of impurities in the graphite would have resulted in some ash residue however, according to SGS Canada Inc. (Lakefield) there was a complete burn.

Aroway Energy Resources Corp. (TSX: V.ARW, Stock Forum) rose 5% to 31.5 cents on Tuesday after the junior oil company announced the results of its independent reserves evaluation in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities as at June 30, 2013. The independent reserves evaluation covers a 12-month period and is focused on all of the company's areas of interests in Alberta and Saskatchewan. According to the Aroway, proved reserves increased by 246% to 584,700 barrels of oil equivalent before royalties (76% oil), with a reserve life 14.5 years. Also, net present value of proved reserves increased by 233% to $8.1 million, before tax, discounted at 10% before royalties.